Nanoco Group Plc · LSE:NANO
Nanoco — 19th Annual Needham Growth Conference 2017
32 slides from Nanoco's conference presentation, January 2017
Slide 1: Investor Presentation
INVESTOR PRESENTATION 19th Annual Needham Growth Conference January 2017
Slide 2: Disclaimer
DISCLAIMER 1 The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. This presentation d
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS 2 • A pioneer in the development and production of CFQD® cadmium- free quantum dots • Scalable "platform technology" with multiple markets and product applications • Cost and performance competitive versus OLED technology • Key target markets are display, lighting, bio-imaging
Slide 4: What is a Quantum Dot?
OVERVIEW 3 WHAT IS A QUANTUM DOT? • Tiny particles of a fluorescent semiconductor material • 1 to 10 nanometers in diameter • Size of the quantum dot determines the spectrum of light emitted • Smaller = blue; larger = red • Quantum dots can also be tuned to light beyond visible light into the Infra-
Slide 5: Nanoco Advantages
OVERVIEW 4 NANOCO ADVANTAGES • World leader in heavy metal free quantum dots • Unique “seeding process” enables mass production • Bright and energy efficient • Highly tunable to emit a specific color on the spectrum • Quantum dot surface can be chemically modified for different end use applications,
Slide 6: Value Creation
OVERVIEW 5 VALUE CREATION 1) CFQD® quantum dots 2) CFQD® quantum 3) CFQD® quantum 4) CFQD® quantum dots dots + Resin dots/Resin in device product CORE BUSINESS CORE BUSINESS Developing & Ensuring Nanoco’s CFQD® quantum dots Nanoco’s near term manufacturing CFQD® quantum dots are incorporated into fi
Slide 7: Key Markets Are Large
OVERVIEW 6 KEY MARKETS ARE LARGE High CRI LED Biological imaging Application LCD backlighting Thin film solar lighting In-vivo & in-vitro diagnostic Water soluble CFQD® CFQD® quantum CFQD® quantum dots quantum dots Technology dots CFQD® CIGS nanomaterials film Functionalized CFQD® quantum dots resin
Slide 8: Benefits of CFQD Quantum Dot Film
DISPLAY 7 BENEFITS OF CFQD® QUANTUM DOT FILM
Slide 9: QD Market Forecast by Application and Screen Size
DISPLAY 8 QD MARKET FORECAST BY APPLICATION AND SCREEN SIZE Source: IHS
Slide 10: QD Market Forecast by Usage Type and Composition
DISPLAY 9 QD MARKET FORECAST BY USAGE TYPE AND COMPOSITION Source: IHS
Slide 11: CES 2017
DISPLAY 10 CES 2017 • TCL, Hisense and TPV-Philips exhibited large screen, ultra high definition, wide color gamut prototype LCD TVs at Nanoco’s suite at Samsung has trail blazed the way, previously with CES 2017 its SUHD TV range, and now with its QLED TV and • All three use CFQD® Fine Color Film™,
Slide 12: Key Partnerships
DISPLAY 11 KEY PARTNERSHIPS DOW CHEMICAL • Announced January 2013; modified March 2016 • Changed from exclusive to non-exclusive in March 2016 • Non-exclusive worldwide technology licensing agreement with royalty payments WAH HONG • Announced July 2016 • 7 year non-exclusive material supply and lice
Slide 13: Components of the Dow Agreement
DISPLAY 12 COMPONENTS OF THE DOW AGREEMENT • The Dow Chemical Company has a major international electronic materials business and has a non- exclusive licence to manufacture and market CFQD® quantum dots Upfront Milestone Quarterly Fee for fee payment royalty services 2013 2014 payment
Slide 14: Dow's CFQD Facility in Cheonan, South Korea
DISPLAY 13 DOW’S CFQD FACILITY IN CHEONAN, SOUTH KOREA • The new Dow CFQD® quantum dot facility will enable mass production of cadmium-free quantum dots under Dow’s TREVISTATM brand • Facility is operational and has the capacity to support millions of large screen TVs • Sample requests have increase
Slide 15: Components of the Wah Hong Agreement
DISPLAY 14 COMPONENTS OF THE WAH HONG AGREEMENT • Wah Hong, headquartered in Taiwan, is a leading optical film manufacturer and supplier to the Taiwanese and Chinese display industry Upfront Two Sale of Quarterly payment milestone QD royalty 2017 - payments products payment 2023
Slide 16: Wah Hong Progress to Date
DISPLAY 15 WAH HONG PROGRESS TO DATE • Wah Hong is manufacturing film under Nanoco’s CFQD® Fine Color film brand from CFQD® purchased from Nanoco’s own production facility in Runcorn, UK • Commercial discussions are ongoing with various Asian display OEMs for use of the CFQD® Fine Color film • Hisen
Slide 17: Components of the Merck Agreement
DISPLAY 16 COMPONENTS OF THE MERCK AGREEMENT • Merck is headquartered in Germany and has c. 60% share of the liquid crystal polymer market • Non-exclusive licence to manufacture, market and sell CFQD® • Technology transfer progressing well and Merck is already producing small scale volumes of CFQD®s
Slide 18: Go to Market Strategy
DISPLAY 17 GO TO MARKET STRATEGY
Slide 19: Runcorn Production Facility
DISPLAY 18 RUNCORN PRODUCTION FACILITY • Nanoco’s existing production facility in Runcorn has been enhanced to meet expected demand from Wah Hong and Merck • ISO 9001:2015 certification for production and supply processes awarded in December 2016 • Scaling will require little additional capital expe
Slide 20: Other Markets: General Lighting
OTHER MARKETS 19 GENERAL LIGHTING • Nanoco’s cadmium-free quantum dots have the ability to tune the colour of light emitted by LEDs such that any particular shade of light can be produced by tailoring the wavelengths • Potential applications for our technology are broad from improved white LED light
Slide 21: Other Markets: Life Sciences
OTHER MARKETS 20 LIFE SCIENCES • Life Science Division established to address the substantial opportunity for our CFQD® quantum dot technology in the healthcare sector • The team is lead by Dr Imad Nassani, who is one of the pioneers of the use of quantum dots in life sciences • Focus on in-vivo can
Slide 22: Other Markets: Solar
OTHER MARKETS 21 SOLAR • Our solar ink has been designed to maximise the absorption of energy and can be printed by low cost methods and annealed into a PV film • The technology is based on copper, indium, gallium, selenium (“CIGS”) materials • Current performance is 17% • We continue to work with L
Slide 23: Summary
SUMMARY 22 • Transformational year with the decision to adopt a non-exclusive licensing strategy in display, enabling us to increase the pace of commercialisation of our technology • New relationships established with Merck and Wah Hong have opened multiple sales channels into the display market • S
Slide 24: Appendices
APPENDICES
Slide 25: Leadership
APPENDICES 24 LEADERSHIP Dr Christopher Richards • CEO, Non-Executive chairman, Arysta LifeSciences Non Executive Chairman • 20 years of increasing management roles at Syngenta • Executive chairman of Plant Health Care • Non-executive director of Dechra Pharmaceuticals plc and of Origin Enterprises
Slide 26: Statement of Comprehensive Income
APPENDICES 25 STATEMENT OF COMPREHENSIVE INCOME 2016 2015 £’000 £’000 Revenue 474 2,029 Cost of sales (177) (316) Gross profit 297 1,713 Other operating income 284 — Operating expenses Research and development expenses (5,995) (5,580) Administrative expenses (7,367) (7,130) Operating loss (12,781) (
Slide 27: Statement of Financial Position
APPENDICES 26 STATEMENT OF FINANCIAL POSITION
Slide 28: Statement of Financial Position
APPENDICES 27 STATEMENT OF FINANCIAL POSITION
Slide 29: TV Market Share
APPENDICES 28 TV MARKET SHARE • Total LCD TV Shipments in 2015 was 226m
Slide 30: TV Film Stack
APPENDICES TV FILM STACK ° 29 General TFT-LCD Structure
Slide 31: RoHS Update
APPENDICIES 30 RoHS UPDATE • The European Commission has been conducting a lengthy and on- going review of the future of cadmium-based quantum dots • In spite of Members of the European Parliament voting overwhelmingly in 2015 to ban cadmium-containing quantum dots, the Commission decided to mandate
Slide 32: Nanoco Group PLC
31 Nanoco Group PLC 46 Grafton Street, Manchester, M13 9NT, United Kingdom, Tel: +44 161 603 7900 | Fax: +44 161 603 7901 info@nanocotechnologies.com www.nanocogroup.com
Nanoco Group — 19th Annual Needham Growth Conference 2017 on 6ix